“SAN FRANCISCO (MarketWatch) — Gold futures fell Wednesday, hit by a selloff that sank prices by as much as $36 an ounce, with the market blaming the move on a combination of technical selling, the expiration of options and futures contracts, deflationary concerns and a stronger U.S. dollar.
“Gold’s volatility is never to be underestimated,” said Jason Rotman, president of Lido Isle Advisors, a Newport Beach, Calif.-based alternative-investment firm. “Markets are emotional as well as rational … and we think an initial selling blast this morning simply caused more liquidation selling to occur.”
Gold for December delivery GCZ2 -1.37% dropped $25.80, or 1.5%, to settle at $1,716.50 an ounce on the Comex division of the New York Mercantile Exchange. It fell by as much as $36.80 to touch a low of $1,705.50 during the session.”
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